Reed Supermarkets case – What is Reed’s position in the Columbus market? Create a perceptual map of the market

Assume that your team has been hired by Meredith Collins, the Vice President of Marketing for Reed Supermarkets to help them find the most effective means of gaining a leadership position in the Columbus market. Your situation analysis will address the following key questions listed below.
1. Of the general segmentation approaches discussed in class, select two that your team feels to be most appropriate for the current state of the supermarket category in Columbus, and describe them.
a. Of the two approaches that you selected, which one do you believe has the most profit potential for Reed, and why?
2. What is Reed’s position in the Columbus market? Create a perceptual map of the market, selecting the factors that you believe to be most relevant as axes and plot the leading stores as appropriate.
a. Where is the area of greatest opportunity? Can Reed meet this opportunity? Why or why not?
b. Write a statement positioning Reed Supermarkets optimally for this opportunity.
3. The management team at Reed has been given a growth share goal of 16% (+2pp) by Reed CEO Jack Morrissey. Assuming that this is possible to do, from where will the share growth most likely be sourced? Will it come from dollar stores; Aldi; or other types of stores mentioned in the case? For whichever type of store you choose to be the most likely source of volume,
a. Discuss Reed’s competencies vs. this store type in terms of the factors affecting consumer channel choice.
b. How can Reed compete effectively vs. your selected store type across the elements of the marketing mix? Be sure to address all mix elements.
4. What type of store does your team view to be the biggest competitive threat to Reed Supermarkets? Is it dollar stores as was suggested in the case; or something else? Why do you say this?
a. Complete a brief SWOT analysis for Reed, including Strengths and Weaknesses (internal factors), and Opportunities and Threats (external factors). Provide your top 3 elements for each quadrant.
b. Versus the competitor that you’ve selected, what Strengths and Opportunities can Reed exploit? What Weaknesses and Threats will be most difficult for Reed to surmount?
5. What pricing strategy does your team recommend that Reed Supermarkets pursue moving forward?
a. Should they maintain their current position; retreat from further price competition and focus on branding and additional higher margin items; adopt a more price-oriented strategy (through increased dollar specials or EDLP); or some other strategy?.
b. What are the risks and rewards associated with Reed embarking on your recommended strategy?

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